Barbara Martin,
Agent, Annapolis, MD
No in a short sale the buyer places an offer on the property just has with a normal offer to purchase agreement. It is submitted to the seller's real estate agent who then presents it to the seller. Once the seller has agreed to the terms of the offer and ratifies the contract, with third party approval addendum and short sale addendum attached, the contract then goes to the short sale lender with all the other seller required documents. It is up to the short sale lender to either approval, reject or negotiate the offer. We have found that often the short sale lender will negotiate on behalf of the lender and what percentage of loss they are willing to take. It gets completed if there a second mortgagee.
Jason Whaley,
Broker, Chandler, AZ
No. You pay the agreed purchase price and your own closing costs(or roll those into the negotiations). The seller is the one obligated to work out the difference to the lender and there are many different ways to do that. See below a nice article on my web site regarding short sales. Jason
Web Reference: http://www.rexmn.com/shortsale.html
Lisa Cartolano,
Agent, 94611
Laurence,
Hi. Good question. No the buyer does not pay the difference. In this instance the bank is the one that would take the $100K loss. The only time I have seen where the bank does not take the loss is where the seller has enough assests to cover the shortfall. For example in this case if the seller had enough liquid assests to cover the $100K difference, the bank may require the seller to pay the difference.
Short sales can be very different and every situation can have it's own set of circumstances.
Hope that helps!
Lisa Cartolano
Alain Pinel Realtors
Hi. Good question. No the buyer does not pay the difference. In this instance the bank is the one that would take the $100K loss. The only time I have seen where the bank does not take the loss is where the seller has enough assests to cover the shortfall. For example in this case if the seller had enough liquid assests to cover the $100K difference, the bank may require the seller to pay the difference.
Short sales can be very different and every situation can have it's own set of circumstances.
Hope that helps!
Lisa Cartolano
Alain Pinel Realtors
Web Reference: http://www.LisaCartolano.com
Jed Lane; Fog City Guide,
Broker, San Francisco, CA
In a bankers dream but No. The lender is agreeing to take less than what is owed, a short payoff, hence the name.
Tony Abad,
Agent, Contra Costa County, CA
Short answer: No. That is why banks drag their feet on them.
Hope this helps!
TA
http://www.TonyAbad.com
Hope this helps!
TA
http://www.TonyAbad.com
Maria Comfort,
Agent, 94015
The is answer is no. You do not have to pay for whatever the current owner owes their lender. You only have to pay for whatever the approved price is by the lender. It is the current owners responsibily to their lender on whatever the difference is based on their principal balance versus how much it was sold for. The current owner does not have to pay it upfront upon the sale of the property. Their lender will send them a form 1099 once the sale has closed.
Get-smart,
Just Looking, Charlotte, NC
Like others have said, no you don't pay the difference. The reason a lender does a short sale is to make the house more marketable.
Web Reference: http://www.buyersofcharlotte.com/stopforeclosure/sanfra...
